Frequently Asked Questions
Who is Ledn?
We are a diverse, Toronto-based team committed to building world-class financial services catered to the crypto-economy.
Please visit our team page to meet us and get in touch.
What services do you offer?
Our first service is bitcoin-backed loans. Please stay tuned for other innovative financial services for the crypto-economy.
What type of collateral do you accept for a Ledn loan?
We currently offer loans secured by bitcoin. We are excited to support other alternative assets in the future, please contact us with any suggestions!
How will my bitcoin be stored during my Ledn loan?
Security will always be our top priority. Collateral bitcoin is kept in cold storage (offline) in institutional-grade vaults throughout Canada. Each customer receives a segregated wallet address allowing for real-time proof of reserves on-chain.
Ledn does not leverage client collateral in any way. We do not use client collateral for any other financial services. Ledn is not a fractional reserve lender.
Can I withdraw my bitcoin at any time?
Yes! You can pay back your loan at any time without penalties. We process the request quickly and strive to have your bitcoin in your wallet within 24 hours.
What index is used for cryptocurrency prices?
We reference Coindesk bitcoin price index to determine loan-to-value ratios for Ledn loans.
What is the interest rate on a Ledn loan?
We charge simple interest of 12% per annum.
Are there any other fees?
There is a one-time administration fee of 2%, with a $25 minimum. Ledn has no hidden fees.
What is the Loan-to-Value Ratio (LTV) of a Ledn loan?
Ledn offers its customers an LTV of 50%.
What loan duration is available?
We offer a simple 12-month term to all our customers. Your current balance can be paid back at any time without penalties.
When are payments due?
Ledn loans offer an innovative repayment schedule which requires you to make only one payment when you close the loan. Monthly interest payments are not required.
Are there penalties if I pay back my Ledn loan before the end of the 12-month term?
No, we do not charge any prepayment penalties.
What happens if the bitcoin price significantly decreases?
If the bitcoin price drops significantly, we will ask you to deposit more collateral into your segregated wallet or pay down some of the principal. If the bitcoin price continues to drop without any action from you, Ledn may sell part of your bitcoin in order to meet the required LTV.
What happens if the bitcoin price increases?
Any gain in the value of bitcoin is yours to keep. You only ever owe the balance of your Ledn loan, which is pre-determined and not affected by the bitcoin price.
What type of information will I need to provide?
Ledn requires all borrowers to provide identity information for our KYC (Know Your Customer) and AML (Anti-Money Laundering) policies. We do not run a credit check on our customers.
Do you offer international loans?
Yes! Please contact us to see if your country currently qualifies for a Ledn loan. email@example.com